EcoGlow Co., a KOSDAQ-listed cosmetics contract manufacturer, signed a memorandum of understanding with a Saudi entity called D Company to develop AI data center infrastructure, marking a dramatic shift from beauty products to artificial intelligence facilities.
The Korean company, which recently merged with fellow cosmetics firm Skin n Skin Co., established an AI data center business division in March and set ambitious targets to develop facilities exceeding 500 megawatts across at least five Korean locations. EcoGlow plans to acquire a South Chungcheong Province site with 200-megawatt capacity as its initial project.
D Company, described as Saudi Arabia’s largest AI data center developer, was reportedly established in Riyadh in 2023 and is pursuing construction projects with the Saudi Industrial Property Authority. The Saudi firm’s Oxagon region project involves an initial investment of $5 billion (6.8 trillion won) targeting 1.5-gigawatt capacity by 2028.
The timing coincides with Saudi Arabia’s broader push into AI infrastructure, including partnerships with Nvidia, AMD and other technology companies announced during President Trump’s recent visit to the kingdom. The Saudi Public Investment Fund launched HUMAIN, an AI company chaired by Crown Prince Mohammed bin Salman, to develop data centers and AI capabilities.
South Korea has been scrambling to catch up in artificial intelligence after lagging behind the US and China, with the government announcing plans to secure 10,000 high-performance GPUs this year for a national AI computing center.
EcoGlow plans to raise substantial capital by September to acquire domestic project sites, according to Park Jong-hong, the executive overseeing the company’s new AI data center business.
